ITC Availability

[Ethirajan Parthasarathy]

An Individual is registered under GST on account of letting out commercial property. He does not maintain any books of account.

Is he eligible to get ITC on:-

1. Replacement of windows and doors of the let out property. Whether such expenditure is capitalized or not evidenced.
2. On painting the commercial building.

In the case of commercial entity, certain expenditure on building owned is treated as revenue expenditure. Can GST department sit on the judgment whether such expenditure should have to be capitalized like what happens in IT proceedings so that they can disallow ITC claim

AI Summary

Input tax credit eligibility turns on whether expenditure is capitalised; taxpayer bears burden to prove revenue nature for credit.
ITC for repairs like painting or replacing windows depends on whether the expenditure is capitalised; routine maintenance treated as revenue expenditure permits ITC, whereas capitalised costs are ineligible. The registered person bears the burden of proof to demonstrate non capitalisation and must maintain and produce relevant books and records; authorities should not reclassify expenditure without justifiable grounds but can challenge credits where documentary evidence is absent.